A Company Uses the Indirect Method to Prepare the Statement

question 115

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. How will a gain from the sale of equipment be presented on the statement?

• A)A gain from the sale of equipment will be an addition in the investing activities section.
• B)A gain from the sale of equipment will be added to net income in the operating activities section.
• C)A gain from the sale of equipment will be a deduction in the financing activities section.
• D)A gain from the sale of equipment will be deducted from net income in the operating activities section.

---

Definitions:

Malpractice Lawsuit

A legal action taken against a healthcare professional or organization for negligence or providing substandard care causing harm to a patient.

Pain Assessment

The systematic evaluation of pain using various scales and measures to understand its intensity, type, and effect on the individual, aimed at guiding treatment decisions.

Appropriate Documentation

The accurate and comprehensive recording of all relevant patient interactions and care, adhering to legal and professional standards.

Clear Yellow Urine

Indicates healthy, well-hydrated urine, generally ranging from pale straw to deep amber.